Simply put, companies want a product they buy to give them more in return than they spent upfront. This idea is known as ROI (return on investment), and it is established through increasing revenue or reducing costs. Customer ROI is our mission and the part we love most about our business. Most fleet companies don’t know why fleets lose money without devices that can help stop it through GPS solutions.
Significant ROI can be derived from GPS telematics immediately. This is done by eliminating costs that are otherwise nearly impossible to track or by increasing revenue through greater productivity. Outside of the financials, you gain a stronger control of your business from day one.
The true value of GPS telematics is the ability to reduce your opportunity costs. These costs are hidden, and hard to measure before GPS telematics technology emerged. But if the key to leaning a business is measuring and streamlining all costs, how can you manage what you don’t measure?
What are these opportunity costs?
It may seem counterintuitive to discuss considerable financial gains from GPS telematics because we know that GPS solutions carry a high up-front cost. But looks can be deceiving, and in today’s business landscape you can’t afford not to think in terms of the big picture.
After the initial cost, it only gets better. A lot better.
In one particular study involving a utility company idle times were reduced by around 50%. To see how this benefited the company check the chart below.
Aside from the environmental benefits of reducing carbon emissions by almost 20 million pounds, the company saved almost a million gallons. With some experts predicting gas to hit $4 a gallon in 2012 that equates to almost $4 million saved in a single year!
Due to the volatility of the oil market, we are obviously sensitive to high gas costs. However, there are a myriad of ways to save time and money with GPS telematics:
* Less fuel shrinkage (theft)
* Reduced labor cost: hours, overtime, headcount
* Less paperwork with more electronic record keeping
* Minimize fuel tax overpayments
* Safer drivers
* Reducing your fleet’s carbon footprint
* Reduced maintenance, insurance and communication costs
The real truth: The longer you avoid installing a Global Resource Group GPS solution; you will be missing out on significant cost reduction. Imagine the company in the example above. Was it more expensive to install the system or to put it off for another year? If they had put it off another year they would have spent a few extra MILLION dollars.
And that’s an opportunity cost – the cost of doing nothing.
Higher oil prices mean higher costs to putting off installation. Think of that extra money, mired in costs you could eliminate. This is why it’s urgent you examine the idea of installing a GRG GPS system into your fleet.
Hopefully this has motivated you to make your fleet more efficient, economical and profitable. Strategically target your costs and eliminate them. Take the next step and call today about making your business the most competitive business it can be!